Hong Kong stocks advanced for a second day amid expectation of stimulus-fueled global recovery
Mable, Mengyuan Ge
Tue Feb 16 2021 17:00:00 GMT+0000 (Coordinated Universal Time)
(HONG KONG) Hong Kong stocks continued to gain on Wednesday, extending a bullish run after the Chinese New Year holiday, with sentiment lifted by optimism towards global economic recovery.
After losses of 0.8% in early trading, the Hang Seng Index rose 1.10% to 31,084.94, marking the highest close since June 2018. It rose 1.9% on Tuesday to kick off the first trading day in the Year of the Ox.
“The upward trend is as expected.” Kenny Tang, the chairman of the Hong Kong Institute of Financial Analysts published a research note today on Business Times. “Capital from the Mainland China is flowing into Hong Kong market, we can see the good performance in the following days,” he wrote.
The markets in mainland China are closed for the Chinese New Year holiday and are scheduled to reopen on Thursday.
“Owing to the COVID 19 epidemic shows sign of improvement in major countries as well as in Hong Kong, together with the vaccine rollout plan, funds flow into the traditional economy sector again.” KGI securities wrote on their investment daily report.
Technology stocks surged, lifting the Hang Seng Tech Index up 2.34% to an all-time high of 10,945.22. ZA Insurance led the rise by 32.16%, Ping An Good Doctor rose 8% after gaining a position in the US fund ARKF, and Sunny Optical rose 6.67%.
Among the top turnover shares, AAC Technologies share price continue to rise up to 7.11%. The cumulative increase in the past two trading days is about 14%. The company announced yesterday that it is proposing to spin off its business and list it on a Chinese stock exchange. The spin-off has approved by Hong Kong Stock Exchange last week.
Chinese e-commerce giant JD.com rose 6.4% to HK$416.80. The logistics branch of JD.com planned to sell its shares through an initial public offering (IPO) on the Hong Kong Stock Exchange, according to a filing on Tuesday.
The Chinese New Year sheds light on the gloomy tourism industry, with more people traveling during the holidays. Tourism sector performed well with a 5% jump. WWPKG Holdings soared 71%, Travel Expert, Genting Hong Kong up more than 30%, with eLong Inc up 15%.
Gaming stocks also rose significantly. Sands China rose 4.93% to HK$36.15 and Galaxy Entertainment added 1.2% to HK$69.80.
US President Joe Biden’s support for the $1.9 trillion stimulus package and the steady promotion of coronavirus vaccines around the world have recently boosted the market.